Cisco is closing in on 100Gbps optical networking. The Silicon Valley-based company on Thursday announced an agreement to buy CoreOptics, a developer of digital signal processing solutions for high-speed optical networking. Subject to usual regulatory approvals, the $99m deal is expected to close sometime in the second half of the year.

The buyer expects the acquisition to enable it to offer service providers advanced 100Gbps transmission solutions, needed to satisfy the growing demand for transmission of IP traffic, driven by video, proliferation of mobile devices and cloud computing, according to a Cisco news release. Cisco cited some of its own research, saying it expected global IP traffic to increase fivefold between 2008 and 2013.

CoreOptics' 43-46 Gb/s CP-QPSK DWDM Transponder

\"With this acquisition, Cisco reinforces its commitment to continue to invest in its core networking business and to deliver IP next-generation networks at 100Gbps and beyond,\" said in a statement Surya Panditi, VP and GM of Cisco's Service Provider Access and Transport Technology Group.

According to Cisco, advanced modulation formants and DSP technologies are what is going to drive the next innovation wave in optical networking. A key ingredient is their ability to increase transmission capabilities over existing fiber optic installations.

Since most of San Jose, Calif.-based CoreOptics staff is located in Nuremberg and Gerlinger, Germany, the acquisition will expands Cisco's optical presence in Europe. Cisco already has a European optical operation in Monza, Italy. Once the CoreOptics acquisition is closed, the company will become part of Cisco's Service Provider Technology Group. Its employees will collaborate with Cisco's existing optical engineering teams in Monza, Bangalore, India and Richardson, Texas.